Estates & Trusts Archives - BeachFleischman CPAs

Trust 65 Day Distribution Deadline is March 6, 2017

February 17, 2017 Mary Yaconiello Estates & Trusts

The 663(b) election, also known as the “65 Day Rule” enables a trust to make a distribution within the first 65 days of year, and have it count as a distribution for the previous tax year. While this has always been a planning tool used to maximize tax savings for trusts and beneficiaries, it takes[…]

Why making annual exclusion gifts before year end can still be a good idea

December 14, 2016 Tax Department Estates & Trusts annual exclusion gifts, generation skipping transfer tax, gifted assets

A tried-and-true estate planning strategy is to make tax-free gifts to loved ones during life, because it reduces potential estate tax at death. There are many ways to make tax-free gifts, but one of the simplest is to take advantage of the annual gift tax exclusion with direct gifts. Even in a potentially changing estate[…]

3 strategies for tax-smart giving

August 11, 2016 Tax Department Estates & Trusts estate assets, gift and estate planning, gifting, tax

, which is beneficial if you have a large estate that could be subject to estate taxes. For 2016, the lifetime gift and estate tax exemption is $5.45 million (twice that for married couples with proper estate planning strategies in place). Even if your estate tax isn’t large enough for estate taxes to be a[…]

Trust 65 Day Distribution Deadline is March 5, 2016

February 9, 2016 February 17, 2017 Mary Yaconiello Estates & Trusts 65 day rule, 663(b) election, deadlines, distributions, estate, trust

Note: The deadline in 2017 is March 6th. (More) The 663(b) election, also known as the “65 Day Rule” enables a trust to make a distribution within the first 65 days of the year, and have it count as a distribution for the previous tax year. While this has always been a planning tool used[…]

Don’t miss your opportunity to make 2015 annual exclusion gifts

December 11, 2015 December 14, 2015 Tax Department Estates & Trusts annual exclusion gifts, estate tax exemption, gifted assets, GST tax exemption, taxable estate, transfer assets

Recently, the IRS released the 2016 annually adjusted amount for the unified gift and estate tax exemption and the generation-skipping transfer (GST) tax exemption: $5.45 million (up from $5.43 million in 2015). But even with the rising exemptions, annual exclusion gifts offer a valuable tax-saving opportunity. The 2015 gift tax annual exclusion allows you to[…]

How to determine if you need to worry about estate taxes

September 15, 2015 Tax Department Estates & Trusts estate tax, gift and estate planning, marital deduction, tax, taxable estate

Here’s a simplified way to project your estate tax exposure. Take the value of your estate, net of any debts. Also subtract any assets that will pass to charity on your death. Then, if you’re married and your spouse is a U.S. citizen, subtract any assets you’ll pass to him or her. Those assets qualify[…]

Married with a large estate?

June 16, 2015 Tax Department Estates & Trusts credit shelter trust, estate planning, estate tax exemption, GST tax exemption

Why you still need a credit shelter trust Even though portability now allows married couples to use up both spouses’ estate tax exemptions without having to make lifetime asset transfers or set up trusts, this “easier” path isn’t necessarily the better path. For couples with large estates, making lifetime asset transfers and setting up trusts[…]

Have you had your annual estate plan checkup?

January 21, 2015 April 13, 2015 Vive Poole Estates & Trusts, Tax Bites annual gift tax exclusion, estate, estate plan, generation-skipping transfer tax exemption, tax exemption

An annual estate plan checkup is critical to the health of your estate plan. Because various exclusion, exemption and deduction amounts are adjusted for inflation, they can change from year to year, impacting your plan: 2014 2015 Lifetime gift and estate tax exemption $5.34 million $5.43 million Generation-skipping transfer tax exemption $5.34 million $5.43 million[…]

What Kind of Trust Can We Set up to Take Care of Our Special Needs Child?

September 15, 2014 April 14, 2015 Mary Yaconiello Estates & Trusts special needs child, special needs trust, supplemental care, will

A. You can create a special needs trust. For example, a couple whose child has severe autism might want a special needs trust because they’re worried about how the child will survive after the parents’ deaths. Reasons a trust is beneficial: Many people depend on government benefits, such as Social Security, Medicaid, rehabilitative care and transportation[…]

Can I Use a Qualified Residence Trust for a Vacation Home?

September 15, 2014 April 14, 2015 Mary Yaconiello Estates & Trusts estate planning, gift tax, QPRT, Qualified Personal Residence Trust, second home, Vacation home

Yes. Many people with second homes want them to stay in the family but also want to limit estate and gift taxes upon their transfer. One way to achieve this might be to create a qualified personal residence trust (QPRT). How Is the Property Valued? The gift’s value is determined by calculating the home’s present[…]